During a span of less than two months, a group of Arkansas lawyers filed 22 class action suits in Lonoke County, Arkansas, alleging violations of the Magnuson-Moss Warranty Act. Here are five key items to know:
- Nine product manufacturers and 13 retailers have been sued — so far. The number of suits grows daily.
- For manufacturers, the claims allege that the content of the product warranty violates the Magnuson-Moss Warranty Act’s “anti-tying” provision. That provision prohibits conditioning warranty coverage on using a service or article identified by brand, trade or corporate name unless that service or article is provided under the warranty without charge.
- For retailers, the claims allege that product warranties are not being provided to customers before sale as required by the Magnuson-Moss Warranty Act.
- For every defendant, while avoiding damage claims to try to keep the cases in state court, each complaint seeks expansive injunctive relief and attorneys’ fees.
- All manufacturers and retailers of consumer products with warranties covered under the Magnuson-Moss Warranty Act should be on heightened alert for this new litigation. These cases are part of a nationwide trend of emerging litigation seen in a number of other states, including California, Illinois and Pennsylvania.